Sensation lnfracon Pvt. Ltd. Vs State of Telangana (Telangana High Court)
The writ petition before the Telangana High Court challenged an order-in-original dated 28 February 2025 passed under Section 73 of the Central Goods and Services Tax Act, 2017 for the financial year 2020–21. The petitioner, a registered GST taxpayer, was issued a show cause notice in Form GST DRC-01 dated 27 November 2024 by the jurisdictional State Tax authority, alleging irregular availment of input tax credit (ITC). Pursuant to the notice, tax liability of ₹96,30,225.26 was imposed.
The petitioner contended that an investigation into alleged ITC availed on invoices without receipt of goods or services had already been conducted and concluded by the Directorate General of GST Intelligence (DGGI) under Sections 74(5) and 74(6) of the CGST Act. During that investigation, the petitioner had paid GST of ₹1,50,85,580 along with interest and penalty and sought closure of proceedings without issuance of a show cause notice. A letter dated 13 February 2024 from the Additional Director, DGGI, confirmed that proceedings were concluded under Section 74(5)/(6) but clarified that such conclusion was limited only to specified suppliers and amounts, and that jurisdictional officers were free to take action in respect of other invoices or suppliers. The closure was stated to be without prejudice to further action under the CGST or TGST Acts.
